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Grab Set to Nab $40 Billion Valuation In Nasdaq Debut

Grab is set to debut on the Nasdaq after raising $4.5 billion in a SPAC deal that values the Singapore-based delivery app service at nearly $40 billion.

Grab Holdings is set to debut on the Nasdaq Thursday after raising $4.5 billion in a deal that values the Singapore-based delivery app service at nearly $40 billion.

Grab on Wednesday confirmed a merger with Altimeter Growth Corp (AGC), a special purpose acquisition vehicle, or SPAC, launched by Altimeter Capital. It raised funds from investors including Fidelity, BlackRock, T. Rowe Price, Abu Dhabi sovereign wealth fund Mubadala and Singapore government investment arm Temasek.

The stock will trade under the symbol GRAB.

The deal, first announced in April, gives Grab a grab-bag of cash to compete with other so-called “super apps” that do more than just move people and stuff around. 

And in an unusual move, Altimeter reportedly has agreed to a three-year lock-up of Grab stock. The firm also is donating 10% of its sponsor shares to the GrabForGood fund, a recently launched endowment to support quality-of-life programs for its drivers, partners and the broader Southeast Asian community. 

Founded in 2012, Grab has grown from a college project first envisioned by its Malaysian co-founders Anthony Tan and Tan Hooi Ling while at Harvard Business School to a super app that offers services in eight markets across Southeast Asia.

Grab acquired Uber Technologies' UBER Southeast Asia business in 2018, and has since expanded into a variety of other services, including food delivery, digital payments and financial services.

Still, the company reported a loss of $988 million for its third quarter, vs. $621 million a year before. Revenue fell 9% to $157 million, weighed down by pandemic restrictions.

In mid-November, Grab's app was hit by a widespread outage which dragged on for more than two days after ia system upgrade backfired.